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VOICE OF ACADEMIA

Academic Series of Universiti Teknologi MARA Kedah

Chief Editor Dr. Junaida Ismail

Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA Cawangan Kedah, Malaysia

Editorial Team Aishah Musa

Academy of Language Studies,

Universiti Teknologi MARA Cawangan Kedah, Malaysia Syahrini Shawalludin

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Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA Cawangan Kedah, Malaysia

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Faculty of Business Management,

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Faculty of Art & Design,

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Academy of Contemporary Islamic Studies Department, Universiti Teknologi MARA Cawangan Kedah, Malaysia

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Academy of Contemporary Islamic Studies Department, Universiti Teknologi MARA Cawangan Kedah, Malaysia

Content Reviewer

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TABLE

CONTENTS of

POTENSI MASJID SEBAGAI PRODUK PELANCONGAN DI MALAYSIA Azarudin Awang1, Zainuddin Zakaria2, Mohd Sabri Abdul Ghafar3, Noralisa Ismail4, Zuraini Jusoh5

AN INVESTIGATION ON UNIVERSITY STUDENTS’ PERCEPTIONS ABOUT ICEBREAKERS IN CLASSROOMS

Che Nooryohana Zulkifli 1, Mohamad Putera Idris 2

A STUDY ON AIR POLLUTION INDEX IN SABAH AND SARAWAK USING PRINCIPAL COMPONENT ANALYSIS AND ARTIFICIAL NEURAL NETWORK

Norwaziah Mahmud1, Nur Elissa Syazrina Zulkifli2, Nur Syuhada Muhammat Pazil3

CHARACTERISTIC PERFORMANCE CUSTOMER RELATION MANAGEMENT: A CASE STUDY TECHNOLOGY EDUCATION INSTITUITION IN MALAYSIA

Muhamad Fairos Mohamad Shah

ILLEGAL STREET HAWKERS ISSUE FACING THE LOCAL AUTHORITIES IN SARAWAK:

A CASE STUDY OF URBAN STREETS IN KUCHING CITY Noni Harianti Junaidi1, Anisa Safiqah Othman2

EMOJI & EMOTICON-RELATED LEGAL ISSUES Nor Azlina Mohd Noor 1, Ahmad Shamsul Abd Aziz2

GRADUATES’ EMPLOYABILITY: ENHANCING STUDENTS’ OVERALL PERFORMANCES Fatin Adilah Razali1, Shafinaz Lyana Abu Talib2 , Naqiah Awang3

PLAYING E-SPORT AMONG UNIVERSITY STUDENTS: BENEFITS AND DISADVANTAGES Nurul Nadiah Rasdi¹ , Ahmad Najmie Rusli²

FACTORS FOR FINANCIAL RESTATEMENTS: CASE OF PUBLIC LISTED COMPANIES IN MALAYSIA

Shafinaz Lyana Abu Talib1, Fatin Adilah Razali2, Zaini Ahmad3

PERCEIVED ORGANIZATIONAL SUPPORT AND JOB STRESS ON TURNOVER INTENTION:

CONCEPTUAL PAPER Roshidah Safeei

IS EMERGING FOREIGN EXCHANGE MARKET EFFICIENT?

Soofiyah Aiman Sanadi1, Bee-Hoong Tay2

THE IMPACT OF PERFORMANCE EXPECTANCY ON PURCHASING TRAVEL PRODUCTS VIA ONLINE TRAVEL AGENTS WEBSITES: GENDER AS MODERATOR

Safwan Marwin Abdul Murad 1, Arunnaa a/p Sivapathy 2, Annuar Aswan Mohd Nor 3 LOGAN MULTI-FUNCTIONAL DIGITAL CLOCK

Nik Nur Aneesa Zamzurri1, Norarifah Ali2, Izza Syahida Abdul Karim3

HIBAH AL-UMRA DAN HIBAH AL-RUQBA DARI PERSPEKTIF MAZHAB AL-SYAFIE Nurfarhana Mohd Daud1, Mohd Asyadi Redzuan2, Dziauddin Sharif3, Siti Noor Ain Binti Aziz4,

Mahasin Saja@Mearaj5, Aflah Isa6

KAJIAN KONSEPTUAL TENTANG KESEDARAN BERWAKAF DALAM KALANGAN KAKITANGAN UITM CAWANGAN KEDAH

Azyyati Anuar1, Rohayati Hussin2 , Nurul Mazrah Manshor3, Noor Hidayah Kasim4 , Daing Maruak Sadek5 PREVENTION IS BETTER THAN CURE: A CASE OF PARENTS’ DECISIONS OF CHILDREN VACCINATIONS

Johan Mukhlis Jan Zakri1, Mohd Nazir Rabun 2, Mohamad Syafiqir Rahman Mohamad Nazir 3

PUBLIC INTENTION TO REPORT CHILD ABUSE IN MALAYSIA: A CROSS SECTIONAL STUDY Nurul Hidayana Mohd Noor 1, Sharifah Hanis Syamimi Ghazali 2, Nurul Nabila Huda Abu Bakar 3

APLIKASI TEKNIK PEMOTONGAN LASER DALAM REKABENTUK PRODUK BATIK MERBOK Normaziana Hassan 1, Mas Ayu Zainal @ Ismail2, Zaidi Yusoff3, Ahmad Fazlan Ahmad Zamri4

MASALAH BERKAITAN FORMAT SURAT RASMI DALAM KALANGAN PENSYARAH BAHASA DI UiTMCPP

Raja Rosila Raja Berahim 1, Noraziah Mohd Amin 2, Nur Afiqah Ab. Latif 3, Noor Azli Affendy Lee 4, Melati Desa 5, Che Nooryohana Zulkifli 6,Boon Yih Mah 7

CONFLUENCE OF COSTUME AND MAKE UP IN DEFINING COMMUNISIM VIA INDEPENDENT DOCUMENTARY

Mohd Nor Shahizan Ali1, Neesa Ameera Mohamed Salim2, Faryna Mohd Khalis 3

1 - 9

10 - 19

20 - 29

30 - 36

37 - 54

55 - 62

63 - 72 73 - 80

81 - 96

97 - 104

105 - 115

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PERCEIVED ORGANIZATIONAL SUPPORT AND JOB STRESS ON TURNOVER INTENTION: CONCEPTUAL PAPER

Roshidah Safeei UiTM Cawangan Kedah

A R T I C L E I N F O A B S T R A C T

Article history:

Received July 2020

Received in revised form Aug 2020 Accepted Oct 2020

Published Jan 2021

In this era of industrial revolution, employee turnover is a major problem in an organization especially human resource management. It happens in every organization regardless of type of industries and sectors. Employee turnover gives negative effects to an organization. It involves high cost burden for an organization that can be either direct or indirect cost. In today’s competitive business environment, retaining key talented employees is challenging to survive in competitive business environment. In this study, the effect of the perceived organizational support as a managerial practice and the job stress which is caused by the nature of the work on the intention of the employees to leave their work are proposed.

©2021 UiTM Kedah. All rights reserved.

Keywords:

client fees, provision of NAS, size of audit committee, types of auditors, financial

restatement Corresponding Author:

[email protected]

1. INTRODUCTION

In this era of industrial revolution, employee turnover is a major problem in an organization especially human resource management. It happens in every organization regardless of type of industries and sectors. Employee turnover gives negative effects to an organization. It involves high cost burden for an organization that can be either direct or indirect cost. The direct cost includes advertisement cost, recruiting cost and training cost. The indirect cost includes reduced of productivity, loss of talent, loss of reputation and low employee morale. When an employee leaves an organization, the ability of the remaining employees to complete their work may be affected and the company needs to invest one more time to recruit and develop new talent.

The employees are the backbone or key component of an organization in running the business. Therefore, the organization must put effort to increase perception of organization support and decrease job stress to make them more engaged and satisfied, which signals healthier organization and reduces employee turnover intentions. In today’s competitive business environment, retaining key talented employees is more challenging to gain competitive advantage. The perceived organization support is having direct impact on the turnover intentions. It was suggested that it is the responsibility of the organization to create good environment to retain good relationship. Employees who are satisfied are more likely to be committed to their organizations and decreased the intention of quitting from a job.

Besides, job stress experienced by employees is also one of the important factors affecting their performance and productivity of the companies. Job stress occurs when employees perceive an imbalance between their work demands and their capability and scarcity of resources to meet the demands (Chan Yin-Fah et al., 2010).

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Based on study by Institute of Labour Market Information and Analysis (ILMIA), Ministry of Human Resources, the average turnover rate was at 20% in 2017. It was considered as high and involuntary turnover represented about 6% (ILMIA, 2018). The high turnover rate results in high costs of recruiting, staffing and training for new employees in companies. The study found that 81% of the total employed workforce in Malaysia was engaged by the Manufacturing and Services industries.

Turnover gives negative impact on productivity in manufacturing industries. Previous studies continue to find the root causes of turnover and suggest solutions (Awang et al., 2013;

Ilmi et al., 2019; Li et al., 2019). This implies a need to understand the factors and find suitable mechanism of employee turnover intention in manufacturing industries of Malaysia. Hence, many managerial practices are being implemented to increase voluntary employees’

intention to continue their work in the organization. In this study, the effect of the perceived organizational support as a managerial practice and the job stress which is caused by the nature of the work on the intention of the employees to leave their work are examined. The unit analysis of this research is employees of manufacturing industry in Northern Peninsula Malaysia.

2.0 LITERATURE REVIEW

2.1 Perceived Organizational Support

The study is expected to examine the effect of perceived organizational support on employees’ turnover intention among manufacturing industry in Malaysia. According to Dawley et al. (2010), the extent to which an employee is committed to the organization is based on an exchange relationship between employer and employee. The perceived organizational support has been associated with a number of dependent variables, particular attention has been paid to perceived organizational support in the context of employee turnover (Dawley et al.,2010; Gok, Akgunduz, & Alkan, 2017; Tao, 2018). Dawley et al., (2010) stated that employees who are valued and have their work appreciated their work by their organizations, increase their intention to stay in the organization. In order to retain the qualified and knowledgeable employees at work, the organization must find the factors contributing to that scenario that can be used.

In addition, according to Wang and Wang (2020), perceived organizational support theory is one important component of the literature in the relationship of employees and organizations. If the employees perceive the organization’s support and care for them, they will work harder for the organization and became loyal the organization. In the perspective of employees, the concept of perceived organizational support evaluates whether an organization has shown enough care for its employees and whether the organization system can meet employee's spiritual and their life needs (Tao, 2018). This study adopts the perceived organizational support definition by Eisenberger et al. (1986); the perceived organizational support is an experience-based attribution concerning the benevolent intent of organization’s policies, norms procedures and actions that affect the employees. It is when employees believe that their organization values their contributions and cares about their well-being (Eisenberger et al., 1986) which reflects the employees’ overall perceptions towards the organization’s support and needs according to employees’ psychological reactions and interests (Tao, 2018).

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Perceived organizational support occurs as a result of three major categories of beneficial treatment received by employees such as fairness, supervisor support, and organizational rewards and favourable job conditions (Rhoades and Eisenberger, 2002). The fairness related with justice procedure involving the quality of interpersonal treatment in resource allocation (Rhoades & Eisenberger, 2002). It also involved social aspect like treating employees with dignity and respect(Rhoades & Eisenberger, 2002). The employees viewed the supervisor support concerning the degree to which supervisors value their contributions and care about their well-being (Rhoades & Eisenberger, 2002). Whereas, organizational rewards and job conditions can be measured in term of recognition, pay, promotions, job security, autonomy, role stressors, and training (Rhoades & Eisenberger, 2002).

Perceived organizational support, which includes perceptions of employees' contributions to their businesses and their perception of welfare, is highly correlated with employees' organizational commitment (Eisenberger et al., 2001). Perceived organizational support has correlated positively with employees’ felt obligation to care about the organization’s welfare and to help the organization reach its objectives (Eisenberger et al., 2001).

Furthermore, perceived managerial support also enhances perceived organizational support and reinforces obligation toward the organization and emotional organizational commitment, thus reduces the intention of employees to leave work (Stinglhamber and Vandenberghe, 2003). From the perspective of employees, the variable perceived organizational support is used to evaluate whether an organization really shows respect for and cares about their employees and meets their spiritual and life needs according to the employees’ psychological responses and needs and gained individual interests (Tao, 2018).

Based on their perception concerning the extent to which their supervisor cares about them and values their contributions, employees are more emotionally attached to him (Stinglhamber and Vandenberghe, 2003). Turnover intentions were lower for workers who received a lot of supervisor support and affective commitment (Nichols et al., 2016). The results showed that perceived organizational support and affective commitment are positively correlated with turnover intention (Tao, 2018). Perceived organizational support had strong relationships in the predicted direction with affective commitment, job satisfaction, positive mood at work, desire to remain with the organization, and turnover intentions (Rhoades and Eisenberger, 2002).

According to Wang and Wang (2020), perceived organizational support has played an important role in improving work performance and reducing employee turnover.

Employees feel that greater organizational support reduces turnover intention. Thus, organization should provide appropriate organizational support in order to decrease the likelihood of turnover intention (Wang and Wang, 2020). Hence, employees with low levels of commitment but high levels of support from organization are less likely to leave the organization (Perryer et al., 2010). Thus, this study will examine the effect of perceived organizational support on turnover intention.

2.2 Job Stress

In general term, job stress means uncontrollable occupational stress which affects mental and physical of the employees. The job stress will occur when demand of the workloads cannot be fulfilled by employees because of inability or time consuming. In psychology, job stress is a form of interaction between the individual and environment which can endanger their health (Awang et al., 2013). Falahat et al. (2019) showed that job stress significantly affects

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job satisfaction and substantially affects turnover intention. The results also found that working environment and job stress have a positive effect on turnover intention (Falahat et al., 2019).

Mosadeghrad (2013) found that the major sources of stress were inadequate pay, inequality at work, too much work, staff shortage, lack of promotion, job insecurity and lack of management support among hospital nurses in Iran. The study found that occupational stress was positively associated with nurses’ turnover intentions.

The job stress is a normal problem in modern life and is faced by many employees in any organization. It affects not only the individual employees but also the company’s performance, such as the company’s outcome and turnover rate (Falahat et al., 2019). As a result, when job stress is high, the tendency for employees to leave the organization is also high (Awang et al., 2013). Jung and Yoon (2014) studied food service industry to understand how job stress affects turnover intention. Jung and Yoon (2014) found that job stress has a positive relationship toward turnover intention. If the level of employees’ job stress is over acceptable limits, this can cause the employees to face physical, psychological and sociological problems and consequently become unhappy and depressed (Gok et al., 2017). If the job that they are performing is the source of stress, employees voluntarily move away from the organization and may want to get rid of the problems caused by the stress (Gok et al., 2017). It is expected that job stress will increase employees' turnover intentions due to the conducted empirical research and explanations. Hence, based on the aforementioned discussion, it is proposed that job stress significantly affect turnover intention.

2.3 Turnover Intention

Tao (2018) defined employee turnover as employee leaving an organization by terminating the employment relationship with the employer and new employees are required to fill up the vacancies (Hee and Ann, 2019). Turnover intention refers to an individual’s intention to leave the current organization by seeking employment elsewhere. It can be indicative of the withdrawal behaviours of an employee when he is not satisfied with the current job, including thoughts of quitting, intention to look for other jobs as well as an assessment and comparison of the current job and other jobs (Tao, 2018).

Normally, employees, who are unhappy and stressed in their organizations, have tendency to leave their organization. There are many factors that contribute to turnover intention. These factors arise because of the nature of the work that the employees do like job satisfaction and job stress in organization (Falahat et al., 2019). Alhashmi et al. (2017) proposed leader–member exchange, perceived organizational support, and psychological stress have impact on turnover intention. It is a tendency or desire to escape which is induced within employees and stimulated by factors outside the organization. These stimulants operate based on employees’ dissatisfaction with their current job or organization, or on their finding for better job opportunities (Wang and Wang, 2020). Dilara et al. (2015) determined the relation between the demographic factors such as age, gender, marital status, and education with factors such as tenure, wage, position, working department and the turnover intention of employees working in five start hotel in Istanbul. The result of the study indicated that the demographic factors such as age, gender, marital status, education, as well as the factors such as tenure, wage, position, working department are determinants for turnover intention (Dilara et al., 2015).

In addition, Wang and Wang (2020) showed that perceived organizational support has a significant negative impact on burnout and turnover intention, and that job resources cannot be substituted perceived organizational support. Thus, an inverse relationship was

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identified between the organizational commitment and turnover intention (Labrague et al., 2018).

Furthermore, many studies have summarized the influential factors of turnover intention and begun to interpret and predict the employee turnover intention from social and psychological perspectives. Their studies suggest the social and psychological factors such as organizational support, job burnout and organizational commitment have significant influence on employee turnover intention (Tao, 2018). Gok et al. (2017) found that job stress and perceived organizational support are related to the employees’ turnover intention. Thus, this study will examine the influence of perceived organizational supports and job stress in turnover intention.

2.4 Underpinning theories

The relationship between perceived organizational supports with turnover intentions can be explained by Social Exchange Theory. According to this theory, when employees perceive that they are seen as valuable and are supported by their organizations, they will show desired behaviour such as staying in the organization and increasing their performance (Gok et al., 2017). Consequently, employees who consider that they are valued and recognized by their organizations, they will be sustained and loyal in this organization for current and future years. This is due to, they will think and expect their earnings will be increased if they contribute to productivity. In other words, employees think that they are supported by their organizations, will also have less intention to leave the work voluntarily (Gok et al., 2017).

Therefore, based on the social exchange theory, perceived organization support is expected to reduce the turnover intention because it can trigger the employees’ sense of responsibility and reciprocation (Tao, 2018). Thus, social exchange theory helps to explain the relationship between perceived organizational support and turnover decisions (Dawley et al., 2010).

Employees in manufacturing industries in Malaysia would retain in the companies if they received and felt perceived organizational support from management. They will be reluctant to resign.

In addition, Rhoades and Eisenberger (2002) stated that job rewards such as job enrichment, promotions, and compensation contribute more to perceived organizational support if they are viewed as purely voluntary organizational actions. In addition, Dawley et al.

(2010) has demonstrated a significant relationship between perceived organizational support and reduced turnover intentions. Chan Yin-Fah et al. (2010) examined the organizational commitments, job stress, job satisfaction and turnover intention among the private sector employees in Petaling, Selangor. They found that there was a significant negative relationship between organizational commitments and turnover intention and positive relationship between job stress and turnover intention (Chan Yin-Fah et al., 2010). Based on the social exchange theory, when employees have received what they are expected from employer, they will act according to the demands of the employers.

3. ESTIMATION METHOD

The sample of this paper focuses on employees of manufacturing industries in Northern Peninsular Malaysia. All employees regardless of their departments were included in this paper.

The company was first identified and then contacted through a telephone call. A total of 500 employees were randomly selected as respondent after performing the proportionate simple random sampling procedure. An invitation letter and a copy of the questionnaire were emailed to the human resource manager to secure permission and support for conducting the survey in the organization. A cover letter to the questionnaire made it clear that the survey

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was voluntary and confidential and that no individual results would be made available to the organization. The questionnaire will be distributed via online survey method using Google form.

There are four sections in the questionnaire. The first section consists of 5 items for the demographic information of participants (age, gender, marital status, education, and job location). The second section includes the Perceived Organization Support Scale. Items representing perceived organizational support were adapted from Eisenberger et al., (1986).

The third section includes the Job Stress Scale. This scale was developed by House & Rizzo (1972). The last part includes the Turnover Intention Scale. The scale was developed by Wayne et al., (1997). In terms of the measurement items, all the items adopted from the previous study.

All the constructs were measured by a five-point Likert scale ranging from “strongly disagree”

to “strongly agree”. The data analysis mainly used SmartPLS to run the construct reliability and analysis.

4. RESULTS AND DISCUSSION

This study will test hypotheses about the influence of perceived organizational support and job stress on turnover intention using questionnaire of employees in manufacturing industry in Northern Peninsula Malaysia. Thus, hypotheses of this study are there is a significant negative relationship between perceived organizational support and employee turnover intention in the manufacturing industry of Northern Peninsula Malaysia and there is a significant positive relationship between job stress and employee turnover intention in the manufacturing industry of Northern Peninsula Malaysia.

5. CONCLUSION

One of the major problems in an organization is the high turnover rate of employees.

Therefore, the factors that impact employee turnover should be investigated to reduce the turnover of employees, which will affect employee productivity, satisfaction, commitment, organization productivity, service quality and organization image for the long period. The study will provide empirical support for the assertion that perceived organizational support and job stress are linked with turnover intention of employees working in manufacturing industries in Northern Peninsula Malaysia. The study will contribute to the organizational management literature by examining perceived of organization support and job stress and demonstrating how the factors impacts employees’ turnover intention. The findings of this study will have important managerial implications. The findings will provide managers to become more knowledgeable about perceived organizational support and job stress; and as a result will provide suitable mechanisms by applying the right human resource polices. They will enable manufacturing industries in Malaysia to understand which types of support are influential in developing the organizational commitment and reducing the turnover intentions of their employees.

ACKNOWLEDGEMENT

The author is grateful for the constructive comments and guidance of the Editor and anonymous reviewers.

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